Kentucky Ag News
Farm income is forecast to decline in 2014 but remain above previous 10-year averages
USDA, Economic Research Service
WASHINGTON — Net farm income is forecast at $113.2 billion in 2014, down about 14 percent from the 2013 forecast of $131.3 billion. If realized, the 2014 forecast would be the fourth-highest value since 1970 after adjusting for inflation.
Lower cash receipts for crops, and to a lesser degree, higher production expenses and reduced government farm payments, drive the expected drop in net farm income.
Net cash income is forecast at $123 billion, down almost 6 percent from the 2013 forecast. Net cash income is projected to decline less than net farm income primarily because it reflects the sale of more than $10 billion in carryover stocks from 2013.
Despite expected record-setting harvests, crop receipts are expected to decrease more than 7 percent in 2014 due to lower prices. Livestock receipts are forecast to increase by more than 15 percent in 2014, largely due to higher prices.